India: Monthly household consumer spending more than doubled in last decade, shows govt data

The per capita monthly household expenditure in India more than doubled over the last decade, according to a report released late Saturday (Feb 24) by the Ministry of Statistics and Programme Implementation. The report also found that Indians are spending less on food and more on discretionary items like clothes, television, and entertainment.

Expenditure more than doubled

The report by the National Sample Survey Office (NSSO), which operates under the Ministry of Statistics and Programme Implementation, conducted the Household Consumption Expenditure Survey (HCES) from August 2022 to July 2023.

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The report shows household Monthly Per Capita Consumption Expenditure (MPCE) in rural and urban areas as well as for different socio-economic groups.

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The average MPCE at current prices, according to the survey, more than doubled to Rs 6,459 ($77.93)a month per person in urban areas in 2022-23 from Rs 2,630 ($31.73) in 2011-12.

Meanwhile, in the rural areas, the average MPCE rose from Rs 1,430 ($17.25)a month per person in 2011-12 to Rs 3,773 ($45.52) in 2022-23, according to the report.

Indians spent more on discretionary items

The report also shows that Indians spent less on food, particularly staples like rice and wheat when compared to discretionary items such as processed food, as well as durables like televisions.

“The latest consumer expenditure survey gives insight on spending patterns of Indian households and is key to gauge demand in the economy,” said the report.

It added, “The data will also be used by the government to readjust items considered for calculating retail inflation and gross domestic product data.”

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The report shows spending on food fell to 46 per cent of monthly consumption for consumers in rural areas, which is nearly seven per cent less than in 2011-12. Meanwhile, in urban areas, it fell from 43 per cent to 39 per cent.

Indians are reportedly spending more on beverages and processed food, as compared to cereals like wheat, rice and pulses.

The findings of the survey will form the basis of a review of India’s consumer price inflation index.

Notably, the Indian government did not release the 2017-2018 survey citing “data quality issues” prompting criticism and accusations that it was concealing economic data. However, it rejected claims that it was withholding the data because it showed weak consumption trends.

(With inputs from agencies)